Taxpayers in receipt of income from business or rental property during the current income year are reminded that the tax on their 2013 income is to be prepaid in instalments, with the first being due no later than Saturday, June 15, 2013.
According to an official of the Inland Revenue Department, the first of such payments is 25 per cent of the tax paid or payable on the 2012 income year, as indicated by the individual’s income tax returns which were filed on or before April 30, 2013.
Taxpayers are being further advised that they should apply in writing to the Commissioner of Inland Revenue for a determination of the amount of tax to be prepaid by instalments if they have commenced their businesses or received rents during the year 2013 or if they are of the opinion that the taxable income in respect of this income year may be less than that of 2012.
An individual who fails to pay the required amount within the prescribed time will have to pay to the commissioner a penalty equal to 10 per cent of the sum that was not paid, or $10, whichever is greater. In addition to the penalty imposed, that person will also have to pay interest at the rate of 0.5 per cent per month on any amount unpaid by the stipulated time.